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New Zealand signs China's first free trade agreement

New Zealand's unique free trade agreement with China (NZ-China FTA) was signed on 7 April 2008 in Beijing. It is expected to come into force (once ratified by Parliament) on 1 October 2008, and aims to liberalise trade between the two nations, tearing down tariffs and barriers over time. It will enable goods, services and investment to move more freely between the countries.

The agreement provides for (for other than specified 'sensitive' products):

• the elimination over time of tariffs on 96 per cent of New Zealand's current exports to China
• 35 per cent of imports from New Zealand (with tariffs 5 per cent or less) to be duty free from day one
• duties (in a range of 6 to 20 per cent) on a further 31 per cent of imports from New Zealand to be phased out by 2012
• tariffs greater than 20 per cent to be reduced to 20 per cent from day one, and phased out over six years (2013)
• remaining tariffs phased out by 1 Jan 2019

Visit www.chinafta.govt.nz for more information.

Published July 2008